The Nigerian National Petroleum Company Limited (NNPCL) has granted permission to major petroleum marketers to lift Premium Motor Spirit (PMS), also known as petrol, from the Dangote Petroleum Refinery. This decision comes under the existing agreement between NNPCL and the refinery.
Initially, NNPCL was the sole distributor of the refinery’s petrol, with the first batch of 16.8 million liters lifted by NNPCL’s retail entity. However, recent reports indicate that some major marketers, including 11 Plc, have already lifted the product for distribution to their outlets across Nigeria.
While the arrangement between NNPCL and the Dangote Refinery benefits major marketers, independent marketers have not been included in this modified agreement. The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Garima, confirmed that only NNPCL has access to Dangote fuel.
Independent marketers are currently waiting for NNPCL to announce the new price of petroleum products before lifting from them. Many IPMAN members have outstanding stock with NNPCL and are expecting clearance this week.
Under the agreement between NNPCL and the Dangote Refinery, marketers have expressed concerns about their ability to remain competitive without direct access to the refinery’s products. Some marketers have indicated that they may resort to importation to continue their operations.
The Federal Government has been urged to completely open up the petroleum sector to all players, including independent marketers. This would allow for increased competition and potentially lower prices for consumers.
Meanwhile, many filling stations across Abuja and Lagos remain closed due to insufficient petrol supplies. The Public Relations Officer of IPMAN, Chief Chinedu Ukadike, has stated that the group plans to begin importing its own petrol to address this issue.
The Centre for the Promotion of Private Enterprise (CPPE) has called for more transparency in the new product lifting arrangement between NNPCL and the major marketers. Dr. Muda Yusuf, the CEO of CPPE, emphasized the need for information on the pricing framework and other details of the arrangement.
The ongoing developments in the petroleum sector highlight the challenges and opportunities facing both the government and private entities as they navigate the complexities of fuel supply and distribution in Nigeria.
